News

Crystal Window & Door Systems Expands in Pennsylvania

- Manufacturer Purchases Building and Property in Northeast PA for Production -

Working with the Greater Scranton Chamber of Commerce’s industrial and economic development affiliates, Scranton Lackawanna Industrial Building Company (SLIBCO) and the Scranton Plan, national manufacturer Crystal Window & Door Systems, headquartered in New York, recently purchased a 226-acre property in northeast Pennsylvania on October 1, 2015 to expand its production capabilities. The property, which is comprised of a parcel of undeveloped land and a developed parcel with a 336,500-ft2 partially outfitted building, was purchased for $5 million.

"Crystal Windows' acquisition in Pennsylvania is the next step in our long history of expansion and growth," said Thomas Chen, Chairman and CEO for Crystal. "For 25 years, Crystal has provided quality products to the construction and fenestration industries, and once up and running, this new production facility will enable us to continue to serve our growing customer base across the nation for a long time to come."

The newly acquired property is located in Benton Township (with a small portion in Scott Township) in Pennsylvania, just north of Scranton, a mile from Interstate 81. Originally owned by Northrop Grumman and then by Owens-Corning, the property was partially but never fully outfitted for production operations. The facility was bought by The Wolfington Companies of King of Prussia, PA and its affiliates in 2003 and has not been further developed. Crystal Windows is looking to change that, and plans major interior renovation and outfitting for production and administrative spaces, as well as major equipment acquisition for a number of vinyl and aluminum window assembly processes.

“This is great news for the greater Scranton area and we are happy that another manufacturer is choosing to expand and create new jobs in Pennsylvania,” said Pennsylvania Department of Community and Economic Development Secretary Dennis Davin. “Governor Wolf is committed to ensuring that we build a climate that attracts business and supports our manufacturers so that we continue to realize successes like today’s announcement.”

The company plans initial production of windows and the hiring of 30 to 50 workers to begin early next year. Employment will ramp up as production increases and is expected to exceed 300 when the factory reaches full capacity in a few years. In the long term, further development of the property may result in even more hires.

Crystal's chronology of significant expansion efforts since its startup in New York City in 1990 include an 85,000-ft2 Chicago factory in 1996, a large new 205,000-ft2 facility in Queens, NY in 2001, the 2003 acquisition of a 131,000-ft2 aluminum extrusion plant in Union, MO and the launch of a 116,000-ft2 Riverside, CA manufacturing operation in 2012. With the latest acquisition in Pennsylvania, the manufacturing footprint of Crystal Window & Door Systems and its affiliates is approaching one million square feet. The company also operates sales and distribution offices in New York, Chicago, Cleveland, St. Louis and Southern California. With over 500 employees nationally, Crystal distributes products in over 40 states and the company is ranked amongst the top 35 window and door manufacturers in North America.

Crystal has worked closely with The Greater Scranton Chamber of Commerce for almost two years to identify opportunities in the region, to facilitate important introductions, and to iron out the details of this specific project. "I would like to thank everyone at The Chamber for all their hard work in bringing this purchase to fruition. I'd like to particularly recognize Chamber President Robert Durkin, and his economic development experts Andy Skrip and Molly Lorenzen for their professionalism," said Mr. Chen.

The real estate broker representatives for the deal were Kim Meincke and Ruth Wang of Jones Lang Lasalle (JLL). Law firms representing the buyer were Hourigan, Kluger & Quinn of Wilkes-Barre and Scranton, PA and The O'Brien Law Group of Susquehanna, PA. Law firms Silverang, Donohoe, Rosenzweig & Haltzman of St. Davids, PA and Hamburg, Rubin, Mullin, Maxwell & Lupin of Lansdale, PA represented the seller. Financing for the acquisition is provided by Webster Bank. Site inspections, legal and engineering reviews, and property appraisals have been conducted by several local and regional Pennsylvania firms.

"We are excited to expand in Northeast Pennsylvania. We know the potential for further manufacturing expansion here is terrific. As we develop this new facility and expand our production operations, we will not only need new workers but also a wide variety of services and materials from regional Pennsylvania suppliers. We're looking forward to being an important part of the community," said Mr. Chen.

SB 756 aims to continue the ability of farm credit institutions to participate in the First Industries Program, and enable the Commonwealth Financing Authority to continue providing guarantees of 51% to 90% of the loan principal to finance an agricultural project.  Additionally, it continues a provision reducing the private investment minimum to $500,000.00.  These provisions were amended into Title 64 in 2007, and in 2011 legislation extended farm credit institutions participation in the program with an expiration date of July 15, 2015.  Effectively, this legislation will extend the farm credit institutions' participation beyond the July 15, 2015 sunset date and there would be no pending sunset dates in the future.

PEDA has received member input from many areas of the state where the program has been utilized to the benefit of the agribusiness community.  Please contact your legislator today to voice your support for this bill which will be considered by the House tomorrow.

AGY, manufacturer of fiberglass yarns, was once the largest manufacturing employer in Huntingdon.  Economic changes, corporate incentives, changing supply chains and much more led to the eventual decline of the company’s footprint in Huntingdon County.  AGY, headquartered in Aiken, S.C., began operations in Huntingdon in 2007 after purchasing the building that formerly operated as Owens-Corning Fiberglass. Over time, many components of the plant’s operations have been sent to the AGY headquarters in Aiken, S.C.  On July 25, 2012 corporate executives for AGY announced their plans to sell the Huntingdon facility and its operations.  At this point the plant employed only 55 people.

The staff of Huntingdon County Business and Industry jumped in to action with the assistance of the Governor’s Action Team to aid in the process of finding a buyer.  Fearful that the wrong buyer would lead to the loss of the final 55 jobs, the process was slow and painful at best. 

Eventually a serious buyer emerged – Stonewood Capital Management of Pittsburgh.  Research showed the firm had significant experience in owning and operating manufacturing facilities. “Stonewood is excited to invest in the continuous filament mat (CFM) business and assist the Huntingdon management team in its efforts to capitalize on growth initiatives.” – Ken Moritz, Stonewood Capital Management. They also opted to partner with former AGY plant manager – Paul Geist.  Paul would eventually become part owner and president of the organization.  He played a vital role in keeping this business operational in Huntingdon. 

The 55 plant employees retained their jobs, as they were hired by the new company, and Moritz said the facility hoped to add an additional 15-20 employees within the following six to eight months.  Geist said the support of the governor’s Action Team, Walker and Huntingdon County Business and Industry (HCBI) were “key in allowing us to acquire this business” and that their support will be instrumental in future expansion projects.

“My partners at Stonewood Capital and I have been very pleased with the support we’ve received from the community, but also from the governor’s Action Team to make sure we keep these jobs here in Huntingdon,” Geist said.

 At a time when many manufacturers are leaving the region, Huntingdon County Business and Industry executive director Amy Wise said the company’s intention to retain and build jobs is refreshing.  “We have been working with the company and they have said how pleased they are to be able to keep jobs here,” Wise said. “I think this is a boost to the economy at a much needed time.”

CAROL L. KILKO

Carol joined the Department of Community and Economic Development (DCED) in June of 2015 as the Special Assistant, Agency Development Initiatives for the Executive Office.  In this capacity, Carol serves as the agency liaison for all workforce development issues and is the training coordinator for all DCED staff professional development.  Carol is responsible for the strong working relationship with all DCED partners to ensure business workforce development needs are identified and addressed. 

This is Carol’s second term with DCED as she worked with the Governor’s Action Team and DCED’s Business Retention Program from 2000-2006.

But most recently, from April 2006 until June of 2015, Carol served as the Director of Training Services for the Pennsylvania State Association of Township Supervisors (PSATS).  As the Director, Carol managed an extensive training program providing local government officials education in all aspects of their daily responsibilities.     

Carol holds a Master’s in Public Administration and a Bachelors of Public Policy from Penn State University.  

Please use the following links to submit your questions in advance of 2015 PEDA Fall Conference panels.

• Keynote Presentation
  
• Partnerships with Eds & Meds to Revitalize Downtowns
  
• Overcoming Challenges in Rural Economic Development
  
• Trends in Shortline Railroads
  
• Major Pipeline Developments in Pennsylvania
  
• Pennsylvania DCED Update
  
• Creative Approaches in Brownfield Redevelopment for Industrial & Commercial Sites
  
• Navigating 501(c)3 Compliance Issues
  
• Use of Special Purpose Entities, Disregarded Entities & Synthetic Leases
  
• Best Practices from our 2015 Award Winners
  

Stephen P. Mullin is a President and Principal of Econsult Solutions, an economic consulting firm based in Philadelphia. His consulting practice concentrates on state and public finance and policy analysis, economic and real estate development and impact analyses, and business-government strategies.

Mr. Mullin was a Senior Vice President and Principal at Econsult Corporation. Mr. Mullin also served from 1993-2000 as Philadelphia’s Director of Commerce, chairing the Mayor’s Economic Development Cabinet and coordinating activities of the City’s development agencies and the Division of Aviation. He served on many boards and commissions, including the City Planning Commission, the Philadelphia Industrial Development Corporation, the Philadelphia Commercial Development Corporation (Chair), the Airport Advisory Board, the Convention and Visitors Bureau, the Historic Commission, the Port of Philadelphia and Camden, and the Penn’s Landing Development Corporation. Mr. Mullin also served as Philadelphia’s Director of Finance from 1992-93, during the City’s fiscal turnaround. He chaired the Municipal Pension Board and was a member of the PICA Board and the Pennsylvania Convention Center Authority Board.

He was Budget Director for the City of St. Louis (82-88) and Director of Corporate Development for the Laclede Gas Company (88-90), where he developed merger and acquisition strategies for the investor-owned utility. From 1990 to 1992, he served as Deputy Director of the St. Louis Development Corporation, where he was responsible for commercial and industrial development programs in St. Louis.

Mr. Mullin is active in Philadelphia corporate and civic activities. He currently serves as an independent trustee of the Optimum Fund Trust Mutual Fund, a Director of the NASDAQOMX Futures Exchange, a co-Chair of the Urban Institute Forum for ULI, and on the advisory boards of the Haverford Trust Company and the Arden Real Estate Funds. He also serves on the boards of CultureWorks, the Independence Visitor Center Corporation, the Community College of Philadelphia Foundation, the Pennsylvania Ballet, the Library Company of Philadelphia, the Lambda Alpha International, and the Presbyterian Foundation. He also serves on the Preservation Alliance Advocacy Committee, the Design Advocacy Group Steering Committee, the Philadelphia Sports Congress, and the Philadelphia World Trade Center Advisory Council. He formerly served as the Regional Director of the Harvard Alumni Association, as Finance Committee Chair of the University City Science Center Board, as Treasurer of the Historical Society of Pennsylvania, as President of the Harvard Club of Philadelphia, as Chairman of the Commercial Realty Review Corporate Advisors, and on the Boards of the Union League, the Fairmount Park Conservancy, the Editorial Board of the AIA’s journal Context, the Mural Arts Advisory Board, and many other civic and cultural boards.

Mr. Mullin is a 1973 cum laude graduate of Phillips Exeter Academy, a 1977 magna cum laude in Economics graduate of Harvard University, and earned an M.A. in Economics from the University of Pennsylvania in 1982. He has taught economics and public finance courses at Drexel University, UPenn’s Fels School, The Wharton School of Business, UPenn’s City Planning Department,  Bryn Mawr College, Widener University, Temple University, Philadelphia University and Peirce College. He served as Chairman of the Corporate Advisory Council at Drexel’s Center for E-Commerce Management. He has authored articles, delivered numerous speeches, is frequently interviewed in print and television media, and participates in many seminars and panels discussing macroeconomics, local government policy, economic and real estate development, environmental issues, education, and e-commerce. He was voted one of Philadelphia’s 101 most connected people in 2007.

Mr. Mullin is a member of the Union League and the Philadelphia Club, the Athenaeum of Philadelphia, the Wissahickon Skating Club, and the Pennsylvania Economic Development Association (PEDA).

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Jennifer Myers joined the Chamber of Business & Industry of Centre County/Centre County Industrial Development Corporation on April 1, 2015 as Vice President of Economic Development. As Vice President, Jennifer focuses on building private-sector strength in the local economy. In addition to assisting local companies in growth opportunities, she actively seeks out opportunities that can bring new jobs and wealth to Centre County.

Jennifer has a strong sales background, joining the Chamber following a more than 14-year career at Abbott Laboratories, where she most recently served as Acute Care Specialist. She also previously served as Health Care Account Executive for Sysco Food Services and as Sales Manager for Concord Hospitality Group. Jennifer received her BS in Hotel and Institutional Management from Penn State University.

Way back in 2009, the Lawrence County Economic Development Corporation (LCEDC) took a leap of faith and became the intrepid owner of a seven-acre manufacturing complex in the City of New Castle.  For more than a century, the vacant property had once been the home of a long line of refractory businesses, each leaving their mark on Lawrence County’s illustrious industrial past.

Without sufficient funding to redevelop the site at the time, the LCEDC watched as the property’s seven buildings quickly fell into ruin as the result of damage by fire, water and vandalism.  It didn’t take long for it to become a major eyesore in the heart of New Castle’s industrial corridor.

Despite its appearance, however, the site had a lot to offer!  It had a viable rail spur connecting potential new users to two Class A carriers, CSX and Norfolk Southern.  In addition, all public utilities served the property including access to 138,000 kV of power.  With this in mind, the LCEDC successfully requested grant funding in the amount of $1,000,000 from the Commonwealth’s PA First program matched by more than $250,000 in private funds.

The LCEDC then set out to find a company that would be interested in helping us bring this former refractory site back to life.  After a year of searching, the owner of a local trucking company, Mark McClymonds, stepped up to the plate and purchased the site in June of this year.

Mr. McClymonds’ project involves the development of a permanent trans-load station offering rail-to-truck service for dry bulk goods.  Products would include fractionation sand for the shale gas industry, limestone and other materials that would then be placed into specialized tractor trailers or dump trucks for transport.  McClymonds will also be erecting a 30,000 s.f. building, installing hopper and conveyor systems, installing new rail siding, switches and track and purchasing new front loaders and trucks.  As part of this project, the LCEDC is utilizing the $1 million PA First grant to prepare the site including removal of asbestos, demolition of the buildings and relocation of the utilities.  The total budget is estimated to be $6,930,000 and will result in 40 full-time jobs. 

Without the infusion of public dollars from the Commonwealth of PA, it would be difficult to imagine that the LCEDC would have ever been successful in resuscitating this once viable property back to productive use!